Healthcare Architecture Market Size & Trends

The Healthcare Architecture Market size was valued at USD 8.59 billion in 2024 and is expected to reach USD 13.09 billion by 2032, growing at a CAGR of 5.46% over the forecast period of 2025-2032.

The global healthcare architecture market is growing significantly, propelled by the increased need to implement technology and an ever-aging infrastructure that needs to be replaced. Rising investments in hospitals, ambulatory surgical centers, and long-term care facilities, particularly in developing regions, boost the growth. Environmental sustainability, modularity, and artificial intelligence create changing planning and building strategies. Coupled with reluctant reforms in healthcare systems and the rise of public-private partnerships, the global healthcare architecture is becoming a critical cornerstone of progress in global health.

The U.S. healthcare architecture market size was valued at USD 2.97 billion in 2024 and is expected to reach USD 4.35 billion by 2032, growing at a CAGR of 4.94% over the forecast period of 2025-2032. The U.S. leads the North American healthcare architecture market, driven by high demand for advanced medical infrastructure, favorable government initiatives, and large investments in hospital modernization. A concentration of large and award-winning architectural firms, as well as an emphasis on patient-centered, sustainable design, are hallmarks of its leadership.

Healthcare Architecture Market Dynamics

Drivers

• Market Growth is driven by the Increasing Demand for Healthcare Infrastructure.

The expanding and aging world population is associated with a higher burden of chronic disease and corresponding demand for health care. Such change in demographic forced governments and private healthcare providers to expand and upgrade healthcare infrastructure facilities to accommodate larger patients and enhance service delivery. To cater to this, new hospitals, specialty clinics, long-term-care facilities, and rehabilitation centers are being constructed. Moreover, rapid urbanization and growing healthcare awareness in emerging economies shall also add impetus for strong demand for progressive healthcare architecture solutions.

The U.S. federal government spent USD 125 billion on subsidies for ACA marketplaces in FY 2024, benefiting about 19 million people.

Launched in 2021, the European Union's EU4Health programme has a budget of €5.1 billion for the 2021–2027 period and is designed to strengthen healthcare systems throughout Europe.

• Governments' Initiatives and Funding are Fuelling the Growth of the Market.

With the vital importance of infrastructure in public health performance, governments across the globe are ramping up investments in healthcare infrastructure. Such initiatives encompass financing new healthcare projects, renewing aging facilities, and implementing innovative design standards that increase efficiency, safety, and sustainability. Initiatives such as Europe’s EU4Health, as well as a variety of stimulus programs across North America and Asia, intend to bolster healthcare systems by facilitating architectural innovation. The presence of this kind of governmental support lowers the financial hurdle for large healthcare projects, and in turn speeds up the healthcare architecture market growth.

FY22 U.S. Public Health Funding- For FY 2023, the Centers for Disease Control and Prevention (CDC) obligated nearly USD 15 billion to state and local jurisdictions, including approximately USD 5.7 billion of supplemental COVID-19 funds.

State-Level Investments- New Zealand spent NZ USD 6.8 billion in capital expenditure in 2025, mainly for keeping or upgrading tangible assets in the health, education, defense, and transport sectors.

Restraint

• The Need for High Capital Investments is Restraining the Market Growth

In developing or redeveloping healthcare infrastructure, there are high upfront costs, such as associated land setup, highly invasive medical machinery, advanced structural material, and high-end tech generation. This level of development usually requires multi-million-dollar budgets, so it is difficult for smaller healthcare providers or institutions in parts of the world that do not have the financial means available to facilitate this type of work. Plus, extended construction schedules and unanticipated cost overruns can put additional pressure on budgets. Therefore, the costly infrastructure required can slow down new healthcare architecture endeavors as well as stymy growth in specific markets.

Healthcare Architecture Market Segmentation Overview

By Service Type

The new construction segment dominated the healthcare architecture market share, with an 86.14%, driven by the increasing need for new healthcare facilities that are equipped to support the incorporation of new medical technologies and innovative processes for patient care. The surge in new hospital and clinic construction in major developed areas such as North America and parts of Asia can be attributed to strong post-pandemic recovery efforts alongside escalating government as well as private sector investments. Building new, modern facilities to support these features requires a new, efficient, patient-centric, energy-efficient, infection control-based building.

The refurbishment segment is expected to grow at the fastest rate during the forecast period as healthcare providers are more inclined to adopt refurbishing existing infrastructure rather than setting up a new facility from scratch. This is a particularly strong prevailing wind in Europe and an aging healthcare system of the developed world, where space and the need for a cost-effective strategy for cost saving encourage remodeling rather than building new. Refurbishment not only helps the healthcare system to adopt new technologies, reduce carbon footprint, and offer better patient experience, but also it is a practical, cost-effective, and upgradeable solution to modernize the infrastructure without halting the operations of the entire facility.

By Facility Type

In 2024, the hospitals segment led the healthcare architecture market with a 73.60% market share. Hospitals are always in steady demand due to they must offer a complete range of services, which includes emergency as well as specialized procedures. Government and private healthcare providers are further emphasizing hospital infrastructure development due to the increasing patient volume in response to the COVID-19 pandemic situation. Also, given that hospitals are a central hub of integrated care delivery, research, and training, they are also a critical focus globally for investment in new construction and modernization projects.

The Ambulatory Surgical Centers (ASCs) segment is expected to grow, with the fastest-growing segment in the forecast. The healthcare industry is focusing on cost-effective patient environments. ASCs, or ambulatory surgical centers, can be performed the same day, at a lower operating cost and quicker turnaround for patients, which appeals to the patients and providers alike. The demand for minimally invasive procedures, technological advancements, and a trend toward outpatient care have made purpose-built ASC facilities increasingly necessary, particularly in emerging markets and suburban regions of the United States, where full-scale hospitals may not be easily accessible.

Healthcare Architecture Market Regional Analysis

North America dominated the market with a 39.60% market share in 2024, due to the well-developed healthcare infrastructure, substantial capital investments in healthcare facilities, and the presence of a high number of large architectural practitioners specializing in healthcare facility design. Much of the hospital construction and refurbishment taking place in the region, especially in the United States, is fueled by an aging population, new technologies, and post-COVID-19 recovery. The growing need for innovative, sustainable, and patient-centric architectural solutions across the region has been driven by strict healthcare regulations and an emphasis on safety, as well as operational efficiency.

The healthcare architecture market in Asia Pacific is expected to grow fastest with 6.28% CAGR over the forecast period due to rapid urbanization, expanding access to healthcare, as well as extensive investments by both governments and the private sector in healthcare infrastructure. China, India, and Southeast Asian countries will be building many new hospitals and clinics to accommodate the expected rise in demand from vast and aging populations. This, combined with rising economic prosperity, a growing medical tourism industry, and changing healthcare policies, is promoting the construction of new large-scale modern medical facilities, positioning Asia Pacific as the most important region for future market growth.

The demand for healthcare architecture is robust in Europe, owing to the increasing aging population coupled with rising healthcare expenditure, and sustainability, and patient-centric care has great focus in the region. Germany, the UK, and France are driving this growth. Increasing use of modular construction technologies and wellness-centric design elements, including therapeutic gardens and natural light, are helping recover patients and improve efficiency.

Government plans to enhance the resilience of, and ensure digital transformation underpinning, healthcare infrastructure in Europe will be supported by the budget for the multi-billion EU4Health programme. Investments by the private sector rose from USD 6.51 billion to USD 13.02 billion for European healthcare private equity and venture capital in the same period. These converging efforts are building Europe into a pole of global healthcare architecture market trends.

The healthcare architecture market in Latin America is growing moderately due to continued investment in hospital construction and modernization. Continued economic instability and inequitable access to healthcare remain challenges that slow the development of certain regions. There has been an ongoing effort to develop better health facilities with an increased focus on both advanced medical technologies and sustainable design principles.

The Middle East and Africa region is growing substantially in the healthcare architecture market analysis. Middle East countries such as the United Arab Emirates, Saudi Arabia & Qatar are investing heavily in healthcare infrastructure to create world-class medical facilities to serve local populations & medical tourists. These trends include sustainable design, incorporation of advanced technologies, luxury wellness amenities, and more. On the other hand, Africa has faced many hurdles as it was economically starved and politically turbulent in the establishment of health systems.

Key Players in the Healthcare Architecture Market

HDR, Stantec, HKS, Perkins&Will, NBBJ, CannonDesign, SmithGroup, HOK, IBI Group, Gresham Smith, and other players.

Recent Developments in the Healthcare Architecture Marke

• February 2025–HKS has made significant appointments and promotions to enhance its healthcare design practice. Nine leaders have assumed new roles within the firm's offices in Chicago, Dallas, Detroit, Houston, Richmond, and Washington, D.C., demonstrating the company's commitment to driving innovation and expertise in healthcare architecture.

• November 2024 –Although Canada has traditionally developed healthcare infrastructure through building giant, one-stop "mega hospitals," there is a change in thinking taking hold. The new model focuses on phased healthcare campuses that foster flexibility, shared resources, and coordinated care, as well as provide for incremental growth over the years.

• April 2023 –HDR has used artificial intelligence software in the design of a critical health clinic in India. The project highlights the company's innovative application of technology to drive efficiency, planning, and accuracy in providing essential healthcare facilities.